Glossary of Endorsements

ALTA ENDORSEMENT FORM 8.1

Provides lender with coverage against loss by reason of lack of priority of the insured mortgage over (a) any federal or state environmental protection lien which is recorded in the public records, except as set forth in Schedule B of the policy, and (b) any state environmental protection lien provided for by any state statute in effect at Date of Policy, except as provided for by state statutes specified in the Endorsement.


The expansion of federal and state environmental protection laws led to the need for a clarification of the coverage afforded by a title insurance policy with regard to those laws. On October 17, 1984 the American Land Title Association first amended its policies to clarify the extent of coverage with regard to environmental protection and made latter revisions October 21, 1987. It is now clear that any federal or state environment protection lien, when recorded in the public records, is within policy coverage.

However, the concern of lenders with respect to the continuing priority of their mortgages was not addressed by that policy revision, nor was that concern alleviated in the least by the enactment of state environmental protection statutes providing for liens, the creation of which did not require recording in the public records, or, in some cases, providing for environmental protection liens which when effective, would be accorded a “super priority” (i.e., would be prior to the lien of any then extant mortgage or deed of trust).

This ALTA Endorsement - Form 8.1 was promulgated after extensive discussions between ALTA and the Federal National Mortgage Association (FNMA). Designed for use with the ALTA Loan or Leasehold Loan Policy covering a mortgage lien on the title to land which is used, or is to be used, primarily for residential purposes, it provides the insured lender with coverage against loss by reason of a lack of priority of the lien of the insured mortgage over

a) any federal or state environmental protection lien which, at Date of Policy, has been recorded in the public records, except as set forth in Schedule B of the policy; or

b) any state environmental protection lien provided for by any state statute in effect at Date of policy except environmental protection liens provided for by state statutes specified in the Endorsement.